Those buying property in Florida for the first time must understand their opportunity. This two-part series will outline the Florida homestead, how it benefits you, and what you must do to take advantage of it. We aim to convince you why it's important and give you the tools to obtain it. Next month, we will release a blog that breaks down the homestead exemption to give you an even greater command of its benefits. If you missed the March 1st, 2023 deadline to file for your 2023 Homestead Exemption, don’t worry - you can still file for your 2023 Homestead Exemption up until September 18, 2023. After the late filing deadline of September 18, 2023, you cannot take advantage of your Homestead Exemption until 2024.
What Is a Homestead Exemption?
The tax burden that your home carries is directly related to its value. One of the benefits of the Florida homestead exemption is that you can reduce the taxable value of your home by up to $50,000. (This should not be confused with assessed or just value.) Your home’s value doesn’t decrease to future buyers, but it does in the eyes of the government. In Florida, taxes are assessed by the county’s appraiser and will fluctuate by location. The average cost of a single-family home in Broward County was $282,400—and they pay close to $2,756 in property taxes annually.
You must understand how the tiered system works to determine how significantly you can reduce your property taxes. (Here’s a pro tip: Remember the number 25.) Suppose your home is worth $100,000 because it is a manageable number to work with. This is how the tiered system works with this home:
The first $25,000 of your home is exempt from all property taxes.
You pay the taxes on the next $25,000
The next $25,000 applies to the assessed value between $50,000 and $75,000
The remaining money ($25,000) is taxed fully.
How Do I Qualify?
This only applies if you own and use the home as your primary residence. You must have lived in the house as of January 1st of that tax year. How this works: when you file for the 2023 tax year, you must have closed on your primary residence on or before December 31, 2022. Additionally, Homestead Exemption applies to properties less than ½ acre, if located within a municipality or 160 acres if outside of a municipality. The best part is that you can do this entirely on your own. For example, if you live here in Broward County, you can file here. For those living elsewhere, simply do a basic search by typing in Your County + Homestead Exemption. You will likely be led to your county’s property appraiser.
Get in Touch with Spectrum Title Services
We encourage you to pursue a homestead exemption to reduce your tax burden, and this is something that doesn’t require you to have an attorney. When you need to buy, sell, or refinance residential or commercial property (or a title quote), contact Spectrum Title Services to schedule your consultation.